Children's Comprehensive Services Signs New Contract for 32-Bed Residential Treatment Program in West Palm Beach, Florida; Sells Bay County, Florida, Hospital.Business Editors NASHVILLE, Tenn.--(BUSINESS WIRE)--March 14, 2000 William J. Ballard, Chairman and Chief Executive Officer of Children's Comprehensive Services, Inc. ("CCS (1) (Common Channel Signaling) A communications system in which one channel is used for signaling and different channels are used for voice/data transmission. Signaling System 7 (SS7) is a CCS system, also known as CCS7. See SS7. ") (Nasdaq/NM: KIDS), today announced that CCS has signed a new contract with the Florida Department Florida is a department (departamento) of Uruguay. Population and Demographics As of the census of 2004, there were 68,181 people and 21,938 households in the department. The average household size was 3.1. For every 100 females, there were 100.4 males. of Juvenile Justice ("FDJJ FDJJ Florida Department of Juvenile Justice ") to operate a 32-bed residential treatment program for moderate-risk male offenders in West Palm Beach, Florida West Palm Beach, also known as West Palm, is the most populous city in Palm Beach County, Florida, USA. The city is also the oldest incorporated municipality in South Florida. According to the University of Florida's 2006 estimates, the city had a population of 107,617. . The program will also provide after-care services to 22 males. CCS entered the contract after responding to a request for proposal from the FDJJ to take over an existing program. CCS will begin operating the program in April, and the contract, at full capacity, is expected to produce annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $1.1 million. Mr. Ballard also announced that CCS has completed the sale of the Bay County hospital in Panama City, Florida Panama City is a city located along U.S. Highway 98 in Bay County, Florida. It is the largest city between Pensacola, Florida and Tallahassee, Florida. It is the larger (population wise) of two principal cities of the Panama City-Lynn Haven, Florida Metropolitan Statistical Area. , which the Company originally purchased as part of its acquisition of Vendell Healthcare. The facility primarily provided acute psychiatric treatment services for adults. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of approximately $3.7 million, which will be used to reduce bank debt, approximate the facility's book value. Although the facility produced revenues of approximately $6.5 million for fiscal 1999, the Company expects the sale to have a neutral to slightly positive impact on future earnings. "We are pleased to be expanding our relationship with the FDJJ through this new program at West Palm Beach," remarked Mr. Ballard. "We believe the Florida market has large potential for CCS, and we have expanded our efforts to assume a greater role in Florida's programming for at-risk youth. The new residential treatment program represents our second residential program for at-risk youth in Florida and complements our existing day treatment programming. "We expect the sale of the Bay County facility to help us focus our efforts in Florida on our core strengths in serving at-risk youth. Unlike the other facilities we continue to operate from the Vendell acquisition, we were not successful in transitioning Bay County from a single-use facility providing primarily acute psychiatric treatment services for adults into a multi-use facility providing at-risk youth programming. Through the sale, we improve our financial position and free resources to concentrate on other opportunities in the Florida market and elsewhere." To take advantage of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, you are hereby cautioned that this release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Actual operations and results may differ materially from those expressed in the forward-looking statements made by the Company. Please refer to CCS's filings with the Securities and Exchange Commission for additional information. The Company disclaims any intent or obligation to update these forward-looking statements. Children's Comprehensive Services provides education, treatment and juvenile justice services for at-risk and troubled youth either directly or through management contracts. It currently offers these services through the operation and management of nonresidential specialized education programs and day treatment programs and both open and secured residential treatment centers A residential treatment center, often referred to by the acronym RTC, is a live-in therapy/behavior modification facility for adolescents who suffer from a variety of emotional conditions, ranging from drug abuse to violence to sexual behavioral problems. to approximately 3,800 youth in 14 states. More information about Children's Comprehensive Services is available on the Company's Website at http://www.ccskids.com. |
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